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Code Of Conduct

A sample Code of Conduct tailored for companies in the Philippines.

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Code Of Conduct

  1. 2. I know what color you are! (activity 1)
  2. 3. Concept <ul><li>COC refers to company’s policy statements that define ethical standards for its conduct. </li></ul><ul><li>Completely voluntary </li></ul><ul><li>Takes a number of formats </li></ul><ul><li>Can address any issue </li></ul><ul><li>Implementation depends totally on company </li></ul>
  3. 4. Format <ul><li>Compliance Codes </li></ul><ul><li>Corporate Credos </li></ul><ul><li>Management Philosophy Statements </li></ul>
  4. 5. Fundamental to a Code of Conduct Credibility Monitoring Enforcement Transparency
  5. 6. Our Philosophy and Spirit… <ul><li>The Company is committed to provide quality services to its clients. It believes that the same can only be achieved and delivered by a professional, well/disciplined and properly trained workforce. </li></ul>
  6. 7. Objectives <ul><li>To promote quality of work life rather than for disciplinary measures </li></ul><ul><li>To define the norms of conduct </li></ul><ul><li>To deter or prevent infraction rather than administer disciplinary actions therefore applied as a corrective measure to align unacceptable behavior or attitude. </li></ul>
  7. 8. Norms of Conduct <ul><li>Honesty and Integrity </li></ul><ul><ul><li>honesty and confidence </li></ul></ul><ul><ul><li>security breach </li></ul></ul><ul><li>Proper Decorum and Work Ethics </li></ul><ul><ul><li>professionalism </li></ul></ul><ul><ul><li>ethical standards </li></ul></ul>
  8. 9. <ul><li>Job Performance </li></ul><ul><ul><li>competence </li></ul></ul><ul><ul><li>productivity, efficiency and effectiveness </li></ul></ul><ul><ul><li>diligence, prudence and dedication towards work responsibilities </li></ul></ul><ul><li>Administrative Conduct and Behavior </li></ul><ul><ul><li>punctuality and attendance </li></ul></ul><ul><ul><li>leave balances </li></ul></ul><ul><ul><li>Uniform and ID cards </li></ul></ul><ul><ul><li>Prudent use of bank property </li></ul></ul><ul><ul><li>Health safety and security </li></ul></ul>
  9. 10. Policies & Guidelines <ul><li>1. Acts or omissions constituting infractions </li></ul><ul><li>Any act or omission contrary to or in violation of the established norms of conduct shall be subject to sanctions as prescribed by this Code. </li></ul>
  10. 11. <ul><li>Management Prerogative to Discipline </li></ul><ul><li>The Bank has an inherent prerogative to instill discipline to employees and to impose reasonable penalties, including dismissal of erring employees pursuant to bank rules, regulations consistent with the Labor Code and applicable rules and regulations. </li></ul>
  11. 12. <ul><li>Command Responsibility </li></ul><ul><li>The doctrine of command responsibility applies to the supervisor of the employee who committed an infraction. Only those infractions resulting from the performance of the employee‘s duties are covered by this doctrine . </li></ul>
  12. 13. <ul><li>Uniform and Just Application </li></ul><ul><li>The Bank commits itself to the firm, uniform and just application of the provisions of this Code . </li></ul><ul><li>It guarantees that no sanction shall be served except for cause and only upon observance of due process. </li></ul><ul><li>all circumstances around the act or omission shall be considered either to mitigate or aggravate the sanction . </li></ul>
  13. 14. <ul><li>5. Ignorance is Not an Excuse </li></ul><ul><li>Ignorance of the Bank’s policies, systems and procedures, rules and regulations in this Code, as well as circulars, memo s or notices duly disseminated shall excuse no one from compliance nor exempt them from disciplinary actions. </li></ul><ul><li>This is also applicable to written or unwritten policies, systems and procedures not yet integrated in the Operations Manual of the Bank but are being practiced as part of standard operating procedures. </li></ul>
  14. 15. <ul><li>6. Non-Exclusivity of the Code </li></ul><ul><li>  This Code shall take effect 60 days upon approval of the Board of Directors insofar as they refer to specific articles and/or sections by way of amendment to the earlier Code of Conduct provided it has been clearly communicated and explained to all employees . </li></ul><ul><li>  </li></ul><ul><li>Thus, old Code of Discipline shall be deemed superseded by this new Code of Conduct. </li></ul><ul><li>  </li></ul><ul><li>  </li></ul>
  15. 16. Infractions and Offenses defined... <ul><li>Any act or omission in violation or disregard of the Bank’s policies, procedures, regulations, as well as those contrary to ethical standards, including any other act deemed detrimental to the interest or image of the Bank or which may adversely affect its integrity . </li></ul>
  16. 17. Three Categories of Infractions/Offenses <ul><li>Minor Infractions </li></ul><ul><li>Attributes: unintentional or unwilling act of negligence, oversight, or mistake </li></ul><ul><li>Result: no serious loss, prejudice, damage, disruption or embarrassment to the Bank. </li></ul>
  17. 18. <ul><li>2. MAJOR INFRACTION </li></ul><ul><li>Attributes: </li></ul><ul><li>habitual carelessness or disregard of the established norms of conduct </li></ul><ul><li>any adverse attitude towards the Bank, work assignment, fellow employees, ethical standards </li></ul><ul><li>a series of repetitive acts or omissions over a short period of time, which if not recurrent, would otherwise be minor infractions </li></ul><ul><li>Results: serious and potential disruption, cost, damage, embarrassment or loss to the Bank. </li></ul>
  18. 19. <ul><li>3. GRAVE INFRACTION </li></ul><ul><li>Attributes: </li></ul><ul><li>deliberate and/ or with malicious intent characterized by dishonesty, gross negligence . </li></ul><ul><li>any act or omission detrimental to the interest of the Bank like disclosure of highly confidential data/information or record to unauthorized persons. </li></ul><ul><li>a series of conscious, habitual and repetitive acts or omissions in blatant disregard of the Bank’s policies, systems and procedures , and the ethical standards and norms of conduct . </li></ul><ul><li>Result: - S evere , substantial loss , prejudice to the Bank </li></ul><ul><li> - critical operational disruption , damage , or embarrassment to the Bank </li></ul>
  19. 20. Prescriptive Period for Administrative Actions For offenses punishable by written warning For offenses punishable by suspension For offenses punishable by dismissal 90 days from date of discovery 2 years from date of discovery 3 years from date of discovery
  20. 21. KINDS OF PENALTIES <ul><li>Written Warning/Reprimand </li></ul><ul><li>Suspension </li></ul><ul><li>Dismissal/Termination </li></ul><ul><li>Restitution </li></ul><ul><li>Forfeiture </li></ul>
  21. 22. What is PREVENTIVE SUSPENSION? <ul><ul><li>It is n ot a penalty but an interim measure imposed pending any &quot;alleged&quot; violation under the following circumstances: </li></ul></ul><ul><ul><li>i f continued presence in the work area poses a serious and imminent threat to the life and property of the Bank or well-being of co-employees;  </li></ul></ul><ul><ul><li>i f continued presence may detract or disrupt normal flow of business; or </li></ul></ul><ul><ul><li>a precautionary measure to prevent possible commission of any other offense prejudicial to the Bank. </li></ul></ul>
  22. 23. Conditions under Preventive suspension <ul><li>Salary is suspended pending determination of guilt or culpability </li></ul><ul><li>Not to exceed 30 days </li></ul><ul><li>Employee is not bound to reimburse amount paid if bank decides to dismiss him </li></ul><ul><li>Reinstatement is without prejudice to management‘s prerogative to transfer/assign to other posts. </li></ul>
  23. 24. Disciplinary Actions as a Corrective Measure <ul><li>The IMMEDIATE SUPERVISOR (IS) has the DUTY to INITIATE dialogue or counseling sessions with concerned employees for MINOR INFRACTIONS </li></ul><ul><li>Minutes of what transpired and the commitments made should be jointly signed by both parties and noted by the Branch/ Department /Group Head. </li></ul><ul><li>HRD is provided an original copy for 201 file purposes . </li></ul>
  24. 25. Effects of Disciplinary Actions <ul><li>For Grave Infraction - the employee forfeits the opportunity to be rewarded on account of job performance by way of a merit increase and/or promotion , as well as the chance to participate in external training programs for a period of twelve (12) months from the date of serving the sanction . </li></ul><ul><li>For M ajor Infraction ( second time ) – Management reserves the right to re-assign/transfer him from his present position to another post and for said employee to be under close supervision. </li></ul>
  25. 26. Disciplinary Authority Disciplinary Action Disciplinary Authority Branches Head Office Warning/Reprimand Branch Head Unit/Div/Dept Head Suspension up to 5d Area/Dept Head Dept/Grp Head Suspension 5d up HRD Head HRD/Grp Head Restitution for losses <P25K Administrative Investigation Committee (AIC) Restitution for losses >P25K AIC Suspension related to Grave Offenses AIC Dismissal/Termination AI C confirmed / approved by the President or in his absence, next highest ranking Officer
  26. 27. Who Implements Disciplinary Actions? <ul><li>HRD implement s the decision of the AIC and the corresponding administrative sanction(s) and penalties to be imposed. </li></ul>
  27. 28. Aggravating/Mitigating Circumstances <ul><li>Aggravating Circumstances are those that increase the seriousness and gravity of the offense and correspondingly increase the penalty to be imposed . </li></ul><ul><li>Mitigating Circumstances are those that reduce the seriousness or gravity of the offense and correspondingly decrease the penalty to be imposed </li></ul>
  28. 29. Administrative Sanctions & Penalties Frequency of Infraction Minor Infraction Major Infraction Grave Infraction 1 st Offense Verbal Warning (done by IS) Written Warning Written Reprimand 5 -9 days Suspension + Restitution 20 days Suspension or Termination + Restitution
  29. 30. Administrative Sanctions & Penalties Frequency 2ndOffense Minor Major Grave Repeat or additional violation on the same account or transaction Reprimand 10-14 days Susp w / warning to Terminate + Restitution + possible Transfer 30 days Suspension to Termination + Restitution Repeat or add ‘l violation on another account or transaction Reprimand or 3-5 days Suspension 15-19 days Suspension w / Warning to Terminate + Restitution + Possible Transfer Termination
  30. 31. Administrative Sanctions & Penalties Frequency 3rd Offense Minor Major Grave Repeat or additional violation on same account or transaction 6 – 10 days Suspension 20-24 d Susp w/ Warning to Terminate + Restitution + Transfer Not Applicable Repeat or add ‘l violation on another account or transaction Re-classified as Major Infraction with 11-15 d suspension + Restitution Re-classified as Grave Infraction with Termination + Restitution Not Applicable
  31. 32. Special Provisions <ul><li>1. Sexual Harassment – the Company takes full cognizance and gives full force and effect to the provisions of R.A. No. 7877 (Anti-Sexual Harassment Act of 1995) </li></ul><ul><li>“ Work, education or training-related sexual harassment is committed by an employer, employee, manager, supervisor, agent of the employer, teacher, instructor, professor, coach, trainer, or any other person who having authority, influence or moral ascendancy over another in a work, training or education environment, demands, requests or otherwise requires any sexual favor from the other regardless of whether the demand, request or requirement for submission is accepted by the object of the said act.” </li></ul>
  32. 33. Sexual Harassment at Work <ul><li>The sexual favor is made as a condition in hiring or continued employment or in granting concessions or favorable considerations such as compensation, promotions, etc. </li></ul><ul><li>When refused would result to discrimination that deprives, reduces, diminishes or takes away employment opportunities . </li></ul><ul><li>These acts tend to impair or put the employee’s rights or privileges under existing laws at a disadvantage. </li></ul><ul><li>These acts would result in an intimidating, hostile, unfriendly, unpleasant or offensive environment for the employee . </li></ul>
  33. 34. <ul><li>Conflict of Interest </li></ul><ul><li>A conflict of interest situation exists whenever an employee’s business activity, relationship or any personal interest will adversely affect the Bank. This includes, but is not necessarily limited to, the business dealings, outside employment, the employ of relatives in the Bank and the acceptance of gifts from clients which is not disclosed to and permitted by the Company. </li></ul>
  34. 35. General Policy on Conflict of Interest <ul><li>All employees shall conduct their business affairs in such a manner and with such ethics and integrity that no conflict of interest situations would arise. Full disclosure of an employee’s business affairs and personal relationships shall be required as standard practice. However, this policy is not intended to interfere with the normal exchange of common courtesies, reasonable favours and the expression of goodwill between the Company and it’s customers. </li></ul>
  35. 36. Conflict of Interest Situations <ul><li>a) Business Dealings </li></ul><ul><li>* whenever an employee has financial interest, direct or indirect, in a client, supplier or other person dealing with the Company. </li></ul><ul><li>* (the employee concerned should abstain from rendering and/or influencing the decision to be made on such deal where a conflict of interest situation is or maybe said to exist) </li></ul>
  36. 37. <ul><li>b) Outside Employment </li></ul><ul><li>A n employment activity undertaken outside of the Company, including but not limited to: </li></ul><ul><li>* J obs, whether part-time or full-time undertaken for an entity, firm or person other than the Bank. </li></ul><ul><li>* Teaching, whether schools or private tutoring. </li></ul><ul><li>  * Consultancy work. </li></ul><ul><li>  * Private practice of a profession, except when done in compliance with the direction of an appropriate governmental authority. </li></ul><ul><li>* Personally held directorship other than those in purely civic, professional, religious or cultural entities. </li></ul><ul><li>  </li></ul>
  37. 38. What to do when outside employment is sought… <ul><li>The employee shall notify and submit a written request to HRD outlining: </li></ul><ul><ul><li>Nature of employment </li></ul></ul><ul><ul><li>Days and hours it shall take place </li></ul></ul><ul><ul><li>The firm, entity or person extending such employment </li></ul></ul><ul><ul><li>The reason why such employment is sought </li></ul></ul><ul><ul><li>Other pertinent data. </li></ul></ul><ul><li>2. A copy of the written request and the subsequent action taken shall form part of the employee’s 201 file. </li></ul><ul><li>3. In any case, the work in the Company shall always remain a top priority. </li></ul>
  38. 39. <ul><li>c) Employees Related by Consanguinity and/or Affinity </li></ul><ul><li>Guidelines for employees related within the 2 nd degree: </li></ul><ul><li>General Rule </li></ul><ul><li>No two related employees shall be assigned to the same Unit </li></ul><ul><li>Absolute Prohibition </li></ul><ul><li>  A husband and wife will not be allowed to work in the same Unit. </li></ul><ul><li>  </li></ul>
  39. 40. <ul><li>Qualified Prohibition </li></ul><ul><li>The prescribed relationship should not exist between employees of the same unit. </li></ul><ul><li>If marriage takes place between employees working in the same Unit, Management through HRD shall initiate transfer of either spouse to another unit in the Company. </li></ul>
  40. 41. <ul><li>d) Gifts </li></ul><ul><li>As a rule, no employee shall ask nor accept any gift from a client </li></ul><ul><li>Except – </li></ul><ul><li>gifts not exceeding P1K as a normal exchange of courtesies and expression of goodwill </li></ul><ul><li>gift was not accepted in return for the making of any loan, renewal thereof, the accepting of any notes, checks, etc. </li></ul><ul><li>gift was not accepted in return for a gift given to the client the cost of which was for the company’s account </li></ul><ul><li>when refusal would, in the judgment of the employee, adversely affect the relationship with the customer or supplier </li></ul><ul><li>refusal or return of the item is truly impractical </li></ul>
  41. 42. Who administers and implements COC? <ul><li>The implementation and administration of the COC shall be a shared responsibility of the HRD ,IAD, Legal , the Unit to which the concerned employee belongs. </li></ul>
  42. 43. Who is responsible in reporting infraction? <ul><li>Immediate Supervisor (IS) </li></ul><ul><li>Any employee who is aware of the infraction committed by a co-employee </li></ul><ul><li>( The written report should be addressed to the IS of the erring employee , copy furnished HRD and/or Group Head, if applicable ) </li></ul>
  43. 44. Paper Flow <ul><li>Show Cause Memo is issued to erring employee </li></ul><ul><li>72 hours response time </li></ul><ul><ul><li>No response without due cause means waiver of right/opportunity to be heard </li></ul></ul><ul><li>In case of Admission of Culpability: </li></ul><ul><ul><li>IS through HRD implements sanction </li></ul></ul><ul><ul><ul><li>1st offense Major infraction - IS has authority to recommend next LOWER sanction depending on impact of offense </li></ul></ul></ul><ul><ul><ul><li>2nd offense Major or Grave – NO benefit of serving a lower sanction </li></ul></ul></ul><ul><ul><ul><li>If sanction is SEPARATION – Resignation instead of Dismissal/Termination may be considered depending on the gravity of the offense committed. </li></ul></ul></ul>
  44. 45. <ul><li>In case of Denial of Culpability: </li></ul><ul><ul><li>An Administrative Investigating Committee (AIC) shall be constituted by the President within 3 days from receipt of notice of written denial </li></ul></ul>
  45. 46. Administrative Investigating Committee (AIC) <ul><li>Composed of five (5) members, one of whom shall be designated as Chairman to conduct a hearing on the merits of the case </li></ul>
  46. 47. AIC MEMBERS
  47. 48. Administrative Investigation General Procedures <ul><li>The Department of the employee concerned shall transmit all pertinent records, documents, evidence or proofs including the written denial of culpability of the employee to the AIC Chairman. </li></ul><ul><li>A thorough evaluation and assessment is done based on the evidence gathered and the employee’s written explanation, as well as the testimonies of all the parties concerned. </li></ul><ul><li>If there is a finding of culpability, a decision will be rendered with the corresponding sanction to be imposed. </li></ul>
  48. 49. Duties of the Committee <ul><li>Evaluate all the records, documents, evidence or proofs on hand and submit all its findings and recommendations and take appropriate action, if the Committee believes that it can render its decision on the basis of such records, documents, evidence or proofs; or </li></ul><ul><li>2. Proceed to a formal investigation, if the Committee finds that the records, documents evidence or proofs before it are insufficient to arrive at a definite finding or recommendation, or if the employee or officer concerned shall request for a formal investigation to present additional evidence separate and distinct from what he has included in his written denial. </li></ul>
  49. 50. Administrative Hearing or Formal Investigation <ul><li>Instances where formal investigation or administrative hearing may be resorted to: </li></ul><ul><li>When the respondent elects to have a formal hearing or investigation. </li></ul><ul><li>Even though the respondent does not request for a hearing but based on the supporting documents submitted, the merits of the case cannot be judiciously decided without a hearing.  </li></ul><ul><li>In case respondent’s answer to the charges filed by the Company creates a serious doubt. </li></ul><ul><li>The committed infraction is complex in nature, such as involvement of another employee, or several accounts or transactions </li></ul>
  50. 51. Formal Hearing Procedures <ul><li>Notice of hearing will be served either personally of by registered mail/telegram) at his address as listed in his personnel records. </li></ul><ul><li>The proceedings should be supported by written Minutes properly signed-off by the concerned employee/parties. </li></ul><ul><li>The Committee’s findings and recommendations shall be forwarded to the President who shall take the necessary and appropriate action thereon. </li></ul><ul><li>The Committee shall endeavor to complete its formal investigation of the case and to submit its findings and recommendation within a period of the thirty (30) days from the date the Committee was constituted. </li></ul>
  51. 52. Note : <ul><li>The technical rules applicable in judicial proceedings is not required in this type of hearing/investigation. </li></ul><ul><li>In case of non-appearance despite due notice and without justifiable request for a re-schedule , the Committee shall still proceed with the investigation in his absence. </li></ul>
  52. 53. Long Walk to Freedom by Nelson R Mandela <ul><ul><li>&quot;I have walked that long road to freedom. I have tried not to falter; I have made missteps along the way. But I have discovered the secret that after climbing a great hill, one only finds that there are more hills to climb. I have taken a moment here to rest, to steal a view of the glorious vista that surrounds me, to look back on the distance I have come. But I can rest only for a moment, for with freedom come responsibilities, and I dare not linger, for my long walk is not yet ended.&quot; </li></ul></ul>
  53. 54. THE END           &quot;A mistake is only a mistake if you don't learn from it.&quot; (Unknown)
  54. 55. Thank You! visit